OSAKA SODA CO.,LTD. (4046) AI Stock Analysis

• Market Cap: ¥221.44B
• Dividend Yield: 1.18%
• Average Volume (3M): 332.60K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.74
• Revenue Growth: 1.18%
• EPS Growth: 32.56%
• Country: JP
• Employees: 1,025
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 24.22
• Shares Outstanding: 133,660,080
• 10 Day Avg. Volume: 370,260
• 30 Day Avg. Volume: 332,596
• PEG Ratio: 0.56
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 2.08
• P/FCF Ratio: 19.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥1,912.00
• Price Target Upside: 12.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥1,912.00 ▲(12.47% Upside)

OSAKA SODA CO.,LTD. has a strong financial foundation, which is the primary driver of its stock score. However, technical indicators suggest potential short-term weakness, and the valuation indicates the stock may be overvalued. These factors balance out to an overall moderate stock score.

OSAKA SODA CO.,LTD. Business Overview & Revenue Model

Company Description

Osaka Soda Co., Ltd. manufactures and sells specialty chemical products. Its products include caustic soda, hydrochloric acid, liquid chlorine, chlorine gas, sodium hypochlorite, sodium chlorite, sodium chlorate, caustic potash, hydrogen gas, epichlorohydrin, allyl chloride, paint materials, adhesive materials, etc. The company also provides epichlorohydrin and acrylic rubber products, as well as diallyl phthalate resins, non-phthalate allyl resins, and epoxy resins. In addition, it offers special silica gel used for analysis and purification of pharmaceuticals, cosmetics, and functional foods; active pharmaceutical ingredients and their intermediates; polysulfide silane coupling agents; electrodes; lens materials; pharmaceutical purification materials; analytical equipment; packed columns; optically active substances; photosensitive resins; color resists; glass fibers; and material recycling. Further, the company offers DAP decorative boards, products for housing facilities, and health foods, as well as recycles fluorescent lights, mercury lamps, glass, and metal products. Additionally, it is involved in the transportation and storage of chemical products; and provision of chemical plants and environmental preservation facilities, etc. The company was formerly known as DAISO Co., Ltd. and changed its name to Osaka Soda Co., Ltd. in October 2015. Osaka Soda Co., Ltd. was incorporated in 1915 and is headquartered in Osaka, Japan.

How the Company Makes Money

Osaka Soda Co., Ltd. generates revenue through the manufacturing and sale of its chemical products. The company's primary revenue streams include the sale of basic chemicals like caustic soda, which is widely used in industrial processes, and epichlorohydrin, a key raw material in the production of epoxy resins. The company also earns revenue from its functional and specialty chemicals, which serve niche markets in pharmaceuticals, electronics, and food industries. Significant partnerships with companies in these sectors help expand its market reach and enhance its earning potential. Additionally, Osaka Soda's investment in research and development contributes to product innovation, thereby supporting its competitive advantage and long-term profitability.

OSAKA SODA CO.,LTD. Financial Statement Overview

Summary

OSAKA SODA CO.,LTD. exhibits strong financial health with consistent revenue growth, solid profitability, and a robust balance sheet. Key strengths include high profitability margins, stable capital structure, and excellent cash flow conversion, while minimal weaknesses are noted in financial leverage.

Income Statement

OSAKA SODA CO.,LTD. has demonstrated strong financial performance, with a consistent revenue growth rate over the past years. The gross profit margin stands at a healthy 29.15% in 2025, reflecting efficient production and cost management. The net profit margin has improved significantly to 10.42%, indicating enhanced profitability. Margins such as EBIT and EBITDA have also shown robust levels at 13.36% and 18.90%, respectively, underscoring solid operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.07, highlighting low leverage and financial stability. The return on equity is impressive at 8.94%, indicating effective use of shareholders' funds. Equity ratio at 75.08% suggests a stable capital structure with a high proportion of assets financed by equity, reducing financial risk.

Cash Flow

OSAKA SODA CO.,LTD. shows strong cash flow metrics, with a remarkable free cash flow growth rate of 218.95% in 2025. The operating cash flow to net income ratio is 1.65, reflecting robust cash generation relative to profit. Furthermore, the free cash flow to net income ratio is 1.00, indicating effective conversion of net income into free cash flow, enhancing liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	99.14B	99.14B	94.56B	104.21B	88.08B	97.27B
Gross Profit	28.94B	28.90B	24.80B	30.47B	26.09B	20.98B
EBITDA	18.17B	18.74B	14.23B	19.86B	17.41B	12.85B
Net Income	10.33B	10.33B	7.65B	10.57B	9.44B	6.05B
Balance Sheet
Total Assets	153.94B	153.94B	150.54B	138.03B	129.16B	119.37B
Cash, Cash Equivalents and Short-Term Investments	43.31B	43.31B	38.43B	36.84B	37.02B	31.93B
Total Debt	8.31B	8.31B	8.42B	8.50B	16.81B	16.89B
Total Liabilities	38.33B	38.33B	40.78B	38.49B	45.27B	42.14B
Stockholders Equity	115.59B	115.59B	109.76B	99.53B	83.87B	77.22B
Cash Flow
Free Cash Flow	0.00	10.31B	3.23B	4.25B	7.63B	7.52B
Operating Cash Flow	0.00	17.05B	8.60B	9.35B	13.38B	9.35B
Investing Cash Flow	0.00	-8.13B	-4.26B	-5.38B	-6.96B	-1.85B
Financing Cash Flow	0.00	-4.22B	-3.20B	-4.60B	-1.65B	-4.46B

OSAKA SODA CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1700.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4046, the sentiment is Negative. The current price of 1700 is below the 20-day moving average (MA) of 1781.05, below the 50-day MA of 1843.50, and above the 200-day MA of 1692.29, indicating a neutral trend. The MACD of -41.28 indicates Positive momentum. The RSI at 33.52 is Neutral, neither overbought nor oversold. The STOCH value of 30.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4046.

OSAKA SODA CO.,LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4202	81 Outperform	¥374.39B	8.90	13.75%	4.26%	1.29%	-22.20%
4043	77 Outperform	¥271.91B	13.01	8.94%	2.65%	0.81%	0.23%
4118	74 Outperform	¥274.02B	12.10	5.36%	3.46%	3.80%	-11.14%
4023	68 Neutral	¥153.43B	28.63	4.09%	3.81%	-11.08%	-16.85%
4046	66 Neutral	¥221.44B	20.29	―	1.18%	1.18%	32.56%
4208	50 Neutral	¥233.34B	-44.10	-1.22%	4.60%	-0.53%	-117.46%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

OSAKA SODA CO.,LTD. Corporate Events

OSAKA SODA Completes Treasury Share Acquisition

OSAKA SODA Co., Ltd. announced the completion of its treasury share acquisition, purchasing 524,300 common shares valued at approximately ¥999.8 million through the Tokyo Stock Exchange’s off-auction trading system. This move, based on a Board resolution, aims to implement flexible capital policies in response to changing business conditions, potentially impacting the company’s market positioning and shareholder value.

OSAKA SODA Announces Treasury Share Buyback Plan

OSAKA SODA Co., Ltd. has announced its decision to repurchase up to 524,300 of its common shares through the Tokyo Stock Exchange’s off-auction trading system, ToSTNeT-3. This strategic move, with a maximum expenditure of ¥999,840,100, is part of the company’s broader plan to enhance shareholder value and optimize its capital structure.

OSAKA SODA Announces Acquisition of Treasury Shares

OSAKA SODA Co., Ltd. has announced its decision to acquire up to 1,000,000 of its common shares, representing 0.8% of the total issued shares, for a maximum value of ¥1,000,000,000. This move is part of the company’s strategy to implement flexible capital policies in response to changes in the business environment, potentially impacting its market positioning and shareholder value.

Osaka Soda Reports Stable Growth in Q1 Financials

Osaka Soda Co., Ltd. reported a slight increase in net sales for the first three months of the fiscal year ending March 31, 2026, with a notable rise in operating and ordinary profits. The company’s financial position remains strong, with a high equity-to-asset ratio, and it has maintained its dividend forecast for the fiscal year, indicating stable financial health and consistent shareholder returns.

OSAKA SODA Announces Treasury Shares Disposal for Stock Compensation

OSAKA SODA Co., Ltd. has announced the disposal of treasury shares to provide restricted stock compensation to its directors and executive officers. This move aims to align the interests of the company’s leadership with shareholders by sharing the benefits and risks associated with stock price fluctuations, thereby enhancing corporate value.